Kelli Blakely is a portfolio manager for the Miranda Fund (Miranda), a core large-cap equity fund. The market proxy and benchmark for performance measurement purposes is the S&P 500. Although the Miranda portfolio generally mirrors the asset class and sector weightings of the S&P, Blakely is allowed a significant amount of leeway in managing the fund. Her portfolio holds only stocks found in the S&P 500 and cash.

Blakely was able to produce exceptional returns last year (as outlined in the table below) through her market-timing and security selection skills. At the outset of the year, she became extremely concerned that the combination of a weak economy and geopolitical uncertainties would negatively impact the market. Taking a bold step, she changed her market allocation. For the entire year her asset class exposures averaged 50% in stocks and 50% in cash. The S&P?s allocation between stocks and cash during the period was a constant 90% and 10%, respectively. The risk-free rate of return was 2%.

One-Year Trailing ReturnsMiranda Fund S&P 500

Return9.8%?21.5%

Standard deviation39.0%44%

Beta1.101.00

a.What are the Sharpe ratios for the Miranda Fund and the S&P 500?(Negative values should be indicated by a minus sign.Do not round intermediate calculations. Round your answers to 4 decimal places.)

Sharpe RatioMiranda fundS&P 500

b.What is theM²measure for Miranda?(Do not round intermediate calculations. Roundyour answer to 2 decimal places.)

M²Measure_________%

c.What is the Treynor measure for the Miranda Fund and the S&P 500?(Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 4 decimal places.)

Treynor Measure ______________

MirandaS&P 500______________

d.What is the Jensen measure for the Miranda Fund?(Do not round intermediate calculations. Round your answers to 4 decimal places.)

Jensen Measure____________________????